Dealmaker: Hunt Mortgage Group Secures $24M in Three States
Hunt Mortgage Group, New York, secured $24.25 million for three multifamily properties in North Carolina, Florida and Virginia.
In Greensboro, N.C., Hunt provided a $10.25 million bridge loan for borrower HCA Villages Greensboro LLC to acquire Serenity Apartments, a 276-unit garden-style property. The 1985-vintage property includes 12 three-story residential buildings and a leasing office.
The 36-month floating-rate interest-only loan included a $1.2 capital improvement reserve for property renovations and improvements.
Following the renovation, the property will be re-branded to Summit Village Apartments, said Hunt Mortgage Group Managing Director RJ Guttroff.
“Serenity Apartments is currently 94 percent occupied and is well located in a strong market for quality multifamily rental properties,” Guttroff said.
Hunt also provided a $9.3 million Fannie Mae loan facility that enabled Corridor Ventures, Avon, Conn., to acquire Jade at Olde Naples, a 104-unit Naples, Fla. property. The 12-year loan included three years of interest-only payments followed by a 30-year amortization schedule.
Jade at Olde Naples, which was developed in 1958 and 1972, received a multi-million dollar gut renovation last year.
Hunt also provided $4.7 million in acquisition and rehabilitation financing for Dale Homes Phase I, a 146-unit Portsmouth, Va. property. The 18-year loan included two years of interest-only amortization.
“Dale Homes will be part of [HUD’s] Rental Assistance Demonstration program in which its public housing units will be converted to project-based Section 8 housing with a 20-year Housing Assistance Payment contract in-place at closing for 100 percent of the units,” said Hunt Mortgage Group Assistant Vice President Joshua Reiss.
Reiss said the sponsor will rely on Low-Income Housing Tax Credits and other financing sources to rehabilitate the property. “By converting through the RAD program, the property receives two 20-year project-based rental assistance contracts, thereby preserving affordability for the next 40 years,” he said.
The Portsmouth Redevelopment & Housing Authority built Dale Homes in 1940 as a 296-unit public housing development. An additional 150 units known as Phase II are proposed for future renovations but are not collateral for this Freddie Mac loan.
Reiss said HUD’s RAD program facilitates public and private investment to revitalize and preserve affordable housing.
In addition to the Freddie Mac loan, Towne Bank, Chesapeake, Va., provided a $6.3 million bridge loan to be re-paid by LIHTC equity at construction completion. This loan will bridge the tax credit equity during the construction period, Reiss said.
